What are the general rules regarding cash deposit and withdrawal into brokerage accounts? 1. Can I wire money from a joint bank account with spouse into my individual trading account (single)? 2. Can I withdraw cash via wire from my individual trading account (single) into a joint bank account with my wife? Many thanks!
You can wire from any account that handles wires to any other that handles wires...some institutions will only handle ACH. Some handle both wires and ACH. If you want to use ACH, the registration of both accounts must be in the same name. If joint account, one of the names must be the same on each end.
It depends on the firm. Some brokerage firms will not wire from a single account into a joint account. Some brokerage firms will not accept deposits from a joint account to a single account. They want exactly the same title. bottom line ask customer service
Most brokerage firms cant check the receiver name, so, you can send money to any account. But cant receive money from third parties
They ask you to whom you are sending the wire. The receiving bank will recognize the error and bounce the wire back.
most banks not check receiver name, just account numbers Maybe some brokers that also are bank like Saxobank can check receiver name, but most brokers cant.
You may want to check this with your tax consultant. In some countries, moving large amounts into a joint bank account with your wife could be considered a taxable gift to your wife, i.e. half of that amount and above a certain tax exemption limit. Also what are the legal implications if one of you is filing for divorce at some point in the future? Even with separate property or a prenup someone could argue that you jointly funded that brokerage account.
I am in the UK, brokers here are subject to strong anti-money laundering regulations. They will not process a withdrawal from a trader's unique account into a joint bank account: they will not allow a trader to open a unique trading account funded from a joint bank account. But they do offer joint trading accounts, and they will send funds from these to a joint bank account, if that is the account from which the funds have been deposited.
If you want to keep things separate then there is IB friends and family account to link 15 accounts but trade them from a master account.
Single to joint will generally be allowed. Joint to single may require additional confirmations for a host of reasons such as a pending divorce, abuse, etc.